Trump’s Tax Bill Aims to Thwart AI Regulation, Experts Warn of Potential Global Consequences

US Republicans are advocating for the approval of significant spending legislation that contains measures to thwart states from implementing regulations on artificial intelligence. Experts caution that the unchecked expansion of AI could exacerbate the planet’s already perilous, overheating climates.

Research from Harvard University indicates that the industry’s massive energy consumption is finite, and carbon dioxide—amounting to around 1 billion tonnes according to the Guardian—is projected to be emitted in the US by AI over the next decade.

During this ten-year span, when Republicans aim to “suspend” state-level regulations on AI, there will be a substantial amount of electricity consumed in data centers for AI applications, contributing to greenhouse gas emissions in the US that surpass those of Japan. Every year, the emissions will be three times higher than those of the UK.


The actual emissions will rely on the efficiency of power plants and the degree of clean energy utilization in the coming years; however, the obstruction of regulations will also play a part, noted Genruka Guidi, a visiting scholar at Harvard’s School of Public Health.

Restricting surveillance will hinder the shift away from fossil fuels and diminish incentives for more energy-efficient AI technologies,” Guidi stated.

We often discuss what AI can do for us, but we rarely consider its impact on our planet. If we genuinely aim to leverage AI to enhance human welfare, we mustn’t overlook the detrimental effects on climate stability and public health.”

Donald Trump has declared that the United States will become the “world capital of artificial intelligence and crypto,” planning to eliminate safeguards surrounding AI development while dismantling regulations limiting greenhouse gas emissions.

The “Big Beautiful” spending bill approved by Republicans in the House of Representatives would prevent states from adopting their own AI regulations, with the GOP-controlled Senate also likely to pass a similar version.

However, the unrestricted usage of AI may significantly undermine efforts to combat the climate crisis while increasing power usage from the US grid. The dependence on fossil fuels like gas and coal continues to grow. AI is particularly energy-intensive, with a single query on ChatGPT consuming about ten times more power than a Google search.

The carbon emissions from US data centers have increased threefold since 2018, with recent Harvard research indicating that the largest “hyperscale” centers constitute 2% of the nation’s electricity usage.

“AI is poised to transform our world,” states Manu Asthana, CEO of PJM Interconnection, the largest grid in the US. Predictions suggest that nearly all increases in future electricity demand will arise from data centers. Asthana asserts this will equate to adding a new home’s worth of electricity to the grid every five years.

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Meanwhile, the rapid escalation of AI is intensifying the recent rollback of climate pledges made by major tech companies. Last year, Google acknowledged that greenhouse gas emissions from AI have surged by 48% since 2019 due to its advances. In effect, the deeper AI penetrates, “reducing emissions may prove challenging.”

Supporters of AI, along with some researchers, contend that advancements in AI could aid the fight against climate change by enhancing the efficiency of grid management and other improvements. Others, however, remain skeptical. “It’s merely an operation for greenwashing, and it’s clear as day,” critiques Alex Hanna, research director at the Institute of Decentralized AI. “Much of what we’ve heard is absolutely ridiculous. Big tech is mortgaging the present for a future that may never materialize.”

So far, no states have definitive regulations regarding AI, but state lawmakers may be aiming to establish such rules, especially in light of diminished federal environmental regulations. This could prompt Congress to reevaluate the ban. “If you were anticipating federal regulations around data centers, that’s definitely off the table right now,” Hanna observed. “It’s rather surprising to observe everything.”

But Republican lawmakers are undeterred. The proposed moratorium on local regulations for states and AI recently cleared a significant hurdle in the Senate over the weekend, as I’ve determined that this ban will allow Trump taxes and megavilles to proceed. Texas Senator Ted Cruz, chairing the Senate Committee on Commerce, Science and Transportation, has prohibited modifications to the language which would prevent spending bills from addressing “foreign issues.”

This clause entails a “temporary suspension” on regulations, substituting a moratorium. It additionally includes an extra $500 million to grant programs aimed at expanding nationwide broadband internet access, stipulating that states will not receive these funds should they attempt to regulate AI.

The suggestion to suspend AI regulations has raised significant alarm among Democrats. Massachusetts Senator Ed Markey, known for his climate advocacy, has indicated his readiness to propose amendments that would strip the bill of its “dangerous” provisions.

“The rapid advancement of artificial intelligence is already impacting our environment—raising energy prices for consumers, straining the grid’s capacity to maintain lighting, depleting local water resources, releasing toxic pollutants into our communities, and amplifying climate emissions,” Markey shared with the Guardian.

“But Republicans want to prohibit AI regulations for ten years, rather than enabling the nation to safeguard its citizenry and our planet. This is shortsighted and irresponsible.”


Massachusetts Assemblyman Jake Ochincross also labeled the proposal as “terrible and unpopular ideas.”

“I believe we must recognize that it is profoundly reckless to allow AI to swiftly and seamlessly fill various sectors such as healthcare, media, entertainment, and education while simultaneously imposing a ban on AI regulations for a decade,” he commented.

Some Republicans also oppose these provisions, including Tennessee Senator Marsha Blackburn and Missouri Senator Josh Hawley. The amendment to eliminate the suspension from the bill requires the backing of at least four Republican senators.

Hawley is reportedly ready to propose amendments to remove this provision later in the week if they are not ruled out beforehand.

Earlier this month, Georgia Representative Marjorie Taylor Greene admitted that she overlooked the provisions in the House’s bill, stating she would not support the legislation if she had been aware. Greene’s group, the Far-Right House Freedom Caucus, stands against the suspension of AI regulations.

Source: www.theguardian.com

China and tariffs thwart Trump’s Tiktok negotiations

Last Wednesday, the Trump administration believed there was a plan to save Tiktok.

With the Chinese owner of Tiktok and some of its US investors Officials in Washington said they were working together on a new ownership structure for the popular video app, and the four of them said they were familiar with the situation. The structure said it would help Tiktok meet the conditions of federal law that require apps to find new owners in order to address national security concerns or face a US ban.

Under the plan, new investors will own 50% of the new American Tiktok companies, while Chinese owners will hold less than 20%, the restrictions specified by the law are two. Byte Dance told the White House that Beijing is happy with the general structure, the two people said.

By Thursday morning, a summary of the draft executive order from Trump had been circulating, according to a copy viewed by The New York Times.

The plan then hit the wall. Baitedan, called the White House in the news: Now that President Trump has announced many tariffs on China’s imports, Beijing has not let Tiktok deals go ahead, the two said.

In response, Trump bought more time. On Friday, he suspended federal law enforcement and extended the deadline for the Tiktok contract to mid-June.

“The report says they made the transaction for Tiktok, not for a deal, but for a fairly close Tiktok. China then changed the transaction due to tariffs,” Trump told reporters Sunday to Air Force 1.

The outage highlights how video apps are plagued by the geopolitical struggle between the US and China over trade and technology advantages. It also reveals China’s power over Tiktok’s future in the US, raising questions about whether Tiktok’s deal will end.

“The parties are so proud to negotiate that we are stuck between two huge economies that are stabbing each other’s heads,” said Ampam Chander, a professor of law and technology who targeted Tiktok, a professor of law and technology at Georgetown University. “Tictok was a mouse that got caught up in his feet between these two elephants.”

The Chinese embassies in Washington, Tiktok and Baitedan did not respond to requests for comment. The White House introduced the Times to Trump’s post on true social that announced an extension of his for debate over the app.

The administration and ordinances were struggling the structure that allowed Tiktok’s biggest US investors, including the Atlantic General and the Susquehanna International Group, while government officials brought in new funds to dilute Chinese ownership of the app.

The interim terms of the transaction said new investors will own 50% of the new American Tiktok group. Current investors own 30% and Chinese owners It’s under 20%, two people on the issue said. Private equity giants like Blackstone and Silver Lake were acquiring stakes in new entities along with venture capital firm Andreessen Horowitz.

The proposal is described in a long, detailed document aimed at investors, said three people with knowledge of the issue.

The two involved in the deal said there was more work to do. Certain potential new investors considered any transaction conditional and were subject to due diligence associated with large-scale transactions, they said.

China has always been a wild card to some extent. Before the president’s announcement on tariffs last week, Baitedan believed that Beijing was happy that he was together in Washington, and the two people are familiar with the issue. However, even before the tariff announcement, there was no guarantee that Beijing would provide informal blessings or formal approval.

Discussions about Tiktok can become even more complicated as the trade war between the two countries escalates. China launched retaliatory tariffs after Trump’s announcement, urging the president on Monday to warn the country on an additional 50% tariff if it persists.

Trump has repeatedly proposed considering lowering China’s tariffs in exchange for approval of the Tiktok deal.

Using tariffs for negotiations is “like a truly amazing effort to force foreign companies to sell,” Chander said.

However, the trade war could still be ongoing in June, he said.

Tiktok is part of it and keeps it unsold for most of the year.

On Friday, ByteDance confirmed for the first time that he was involved in negotiations with the US government regarding the future of the app, but ultimately there was no decision in the hands of other parties.

“There are important issues that need to be resolved,” a bytedance spokesman told reporters in an email. “The contract is subject to approval under Chinese law.”

Maggie Haberman contributed to the report from Washington.

Source: www.nytimes.com

UK watchdog may thwart big tech companies’ ambitions for AI dominance.

“MMonopoly is Silicon Valley’s answer to Darth Vader and is “a condition of all successful business,” said Peter Thiel. This aspiration is widely shared by Valley giant Gamman, his new acronym for Google, Apple, Microsoft, Meta, Amazon, and Nvidia. And with the advent of AI, each one’s desire to reach that blessed state before others gets there is even greater.

One sign of their anxiety is that they are spending insane amounts of money on the 70-odd generative AI startups that have proliferated since it became clear that AI was going to be the new thing. Microsoft, for example, reportedly spent $13bn (about £10.4bn) on OpenAI, while leading a $1.3bn funding round for DeepMind co-founder Mustafa Suleiman’s startup Inflection. He was also an investor. Amazon invested $4 billion in Anthropic, a startup founded by refugees from OpenAI. Google invested $500 million in the same business, he pledged an additional $1.5 billion, and he invested an unknown amount in A121 Labs and Hugging Face.
(Yes, I know the name doesn’t mean anything.) Microsoft also invested in his French AI startup, Mistral. and so on. In 2023, only $9 billion of the $27 billion invested in AI startups was invested. From a venture capitalist company –Until recently, the company was by far the largest funder of emerging technology companies in Silicon Valley.

what’s happening? After all, the big tech companies have their own “fundamental” AI models and don’t need what smaller companies have built or are building. And every penny drops. We’ve seen this strategy before. An existing company discovers and captures potential competitors at an early stage. For example, Google acquired YouTube in his 2006. Facebook acquired Instagram for $1 billion in 2012 when it had only 13 employees, and WhatsApp in 2014 (for $19 billion, which seemed an exorbitant amount at the time).

With the 20/20 vision of hindsight, we now see that these were all anti-competitive acquisitions that should have been resisted at the time and were not. That’s why it’s so refreshing to know that at least one regulator, the UK’s Competition and Markets Authority (CMA), seems determined to learn from its history.

in Speech given at a gathering of American antitrust lawyers Just over a week ago in Washington, CMA CEO Sara Cardel called for ensuring the market for fundamental AI models is supported by fair, open and effective competition and strong consumer protections. announced that he had decided to do so. Her concern is that the growing presence of a few large incumbents across the AI ​​value chain (the series of steps required to turn inputs into usable outputs) will undermine competition and limit companies’ options. This meant that there was a possibility that these markets could be formed in a way that degraded quality. and consumers.

She cited three major risks to competition. One is that companies that control critical inputs for developing the underlying model may restrict access to protect themselves from competition. Powerful incumbents may exploit their positions in consumer and business markets to limit competition in model deployment and thereby distort choice. And we believe that partnerships between key players have the potential to strengthen or expand existing market power across the value chain.

He also said the CMA would take action to assess and mitigate competition risks from new technologies through its formidable investigatory powers, including merger control reviews, market investigations and possible designations under new digital competition laws. I warned you.

It was truly amazing to hear a major regulator speak like this about the technology industry. Cardel said the CMA will be a technology industry that believes in being proactive and (as is often said) moving quickly to break things, rather than waiting for problems to arise before acting. He suggested that he would try to stay ahead of the big players rather than lag behind them. He said the CMA is already preparing for this task based on what it has learned so far from adapting to technology platforms. Rather than focusing only on individual parts of the chain, the value of AI model deploymenthe aims to look at the entire chain holistically. It also plans to use its merger review powers more aggressively to assess the impact of alliances and AI investments on competition.

Isn’t that exciting? But in some ways it is no surprise as it is one of the few British institutions that seems able to use the post-Brexit freedoms as an opportunity for creativity and innovation. And bigwigs who are tempted to dismiss Cardel’s speech as mere fiery rhetoric should reflect on the CMA’s recent track record. A thorough investigation into Microsoft’s acquisition of Activision Blizzard, for example; or how Meta forced the sale of Giphy, an online database and search engine that allows users to find and share animated GIF files. Cardel may be lower profile than her U.S. FTC counterpart Lina Khan, but it’s clear she means business. People with strong possessiveness should be careful.

Source: www.theguardian.com